HOUSTON, Oct. 1, 2001 (PRIMEZONE) -- SurgiCare, Inc. (AMEX:SRG), a Houston-based Ambulatory Surgical Center (ASC) provider, announced today that it has signed a Letter of Intent to develop and operate a multi-specialty surgery center to be located in Bellaire, Texas. The Facility will emphasize plastic surgery. SurgiCare received a $150,000 development fee in conjunction with this transaction, which the company will recognize in its third quarter financial results. SurgiCare received another $150,000 fee related to a previously announced Specialty Facility that it will also develop in Houston. This marks the third facility that the Company has signed a Letter of Intent on within the past six weeks.
"During the past year we have taken steps to position the Company for a nationwide roll-out of our surgery centers," said Charles Cohen, SurgiCare's Co-Chief Executive Officer and Chief Operating Officer. "Now, we are starting to see results from these efforts. We believe that the recent increase in Letters of Intent to develop highly profitable new facilities will represent a trend that will only accelerate as our development and acquisition activities continue. These facilities not only position the Company to participate in management fees and profit-sharing for years to come, but also create fee income that will contribute to bottom-line results immediately."
"We believe that both the endoscopy center and this new multi specialty center, with a strong emphasis in plastic surgery, will create compelling opportunities for doctors, patients and our shareholders," said Dr. David L. Blumfield, SurgiCare's Co-Chief Executive Officer and President. "We have identified communities that need these types of medical services and expect that these facilities will be immediately accretive for our shareholders."
About SurgiCare, Inc.
SurgiCare, Inc. offers licensed, freestanding Ambulatory Surgery Centers, and specialty hospitals for use by physicians and its physician partners and their patients. Freestanding refers to the fact that the facilities are physically and organizationally independent from a hospital. Ambulatory Surgery means surgical procedures, which do not require overnight hospitalization after the surgery. The ASC's are run under the guidance of a committee of physician partners. SurgiCare's goal is to grow through mergers, acquisitions, and turnkey management contracts in conjunction with physician-involved supervision and potential equity participation within a public company model. For more information on SurgiCare, please visit the company's Website at www.surgicareinc.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipates" or similar expression. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of SurgiCare, Inc., (the Company) to differ materially from those expressed or implied by such forward-looking statements. (Such factors include, among others, the risk factors contained in the Company's Annual Reports and other filings with the Securities and Exchange Commission.) In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the Company assumes no responsibility to update the information included herein for events occurring after the date hereof.